Case Note & Summary
The petitioner, Pravin Indarchand Jain, a member of Mahavir Nagari Sahakari Patpedhi Maryadit Chopda (Mahavir Society), filed complaints before the District Deputy Registrar (DDR) seeking disqualification of respondent Nos. 4 to 7 as representatives of the Managing Committee on the ground that they were defaulters in loan repayment. The DDR issued a show cause notice and, after hearing the parties, passed an order on 01.12.2020 disqualifying them. Respondent Nos. 4 to 7 appealed to the Divisional Joint Registrar (DJR), who stayed the DDR's order on 20.01.2021 and later set it aside on 29.04.2021. The petitioner challenged the DJR's order before the High Court. The High Court examined the scope of appellate jurisdiction under Section 152 of the Maharashtra Co-operative Societies Act, 1960. It held that the DJR exceeded its jurisdiction by re-appreciating the evidence and substituting its own findings without finding that the DDR's order was perverse or illegal. The court noted that the DDR had correctly applied the law regarding disqualification of defaulters. Consequently, the High Court allowed the writ petition, set aside the DJR's order, and restored the DDR's order disqualifying respondent Nos. 4 to 7.
Headnote
A) Co-operative Law - Disqualification of Directors - Default in Loan Repayment - Sections 27, 152 Maharashtra Co-operative Societies Act, 1960 - The DDR disqualified respondent Nos. 4 to 7 as representatives of the Managing Committee for being defaulters in loan repayment. The DJR set aside the order, but the High Court held that the DJR exceeded its jurisdiction by re-appreciating evidence and substituting its own findings without finding perversity or illegality. The DDR's order was restored. (Paras 2-10)
B) Co-operative Law - Appellate Jurisdiction - Scope of Appeal - Section 152 Maharashtra Co-operative Societies Act, 1960 - The appellate authority under Section 152 cannot re-appreciate evidence unless the original order is perverse or illegal. The DJR's order was set aside as it acted beyond its jurisdiction. (Paras 8-10)
Issue of Consideration
Whether the Divisional Joint Registrar (DJR) exceeded its jurisdiction under Section 152 of the Maharashtra Co-operative Societies Act, 1960 by re-appreciating evidence and setting aside the District Deputy Registrar's (DDR) order disqualifying respondent Nos. 4 to 7 as defaulters.
Final Decision
The High Court allowed the writ petition, set aside the DJR's order dated 29.04.2021, and restored the DDR's order dated 01.12.2020 disqualifying respondent Nos. 4 to 7.
Law Points
- Disqualification of directors
- Default in loan repayment
- Co-operative societies
- Jurisdiction of appellate authority
- Re-appreciation of evidence
Case Details
2022 LawText (BOM) (10) 5
Writ Petition No. 11348 of 2021
Mr. Patil Vijay B. (for petitioner), Mr. K.N. Lokhande (AGP for respondent Nos. 1 to 3), Mr. M.V. Salunke h/f V.D. Salunke (for respondent Nos. 4,6,7), Mr. R.N. Dhorde (Senior Counsel) a/w Mr. P.S. Dighe and Mr. V.R. Dhorde (for respondent No. 5)
State of Maharashtra, Divisional Joint Registrar, District Deputy Registrar, Shantilal Tarachand Bothra, Rerkha Shantilal Bothra, Sharmila Sudhir Jain, Pandurang Vanji Sonwane
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Nature of Litigation
Writ petition challenging the order of the Divisional Joint Registrar setting aside the disqualification of respondent Nos. 4 to 7 as representatives of the Managing Committee of a co-operative society.
Remedy Sought
Petitioner sought restoration of the DDR's order disqualifying respondent Nos. 4 to 7.
Filing Reason
Petitioner filed complaints before DDR seeking disqualification of respondent Nos. 4 to 7 on the ground that they were defaulters in loan repayment.
Previous Decisions
DDR passed order dated 01.12.2020 disqualifying respondent Nos. 4 to 7. DJR set aside that order on 29.04.2021.
Issues
Whether the DJR exceeded its jurisdiction under Section 152 of the Maharashtra Co-operative Societies Act, 1960 by re-appreciating evidence and setting aside the DDR's order.
Submissions/Arguments
Petitioner argued that the DJR exceeded its jurisdiction by re-appreciating evidence.
Respondent Nos. 4 to 7 argued that the DDR's order was erroneous and the DJR correctly set it aside.
Ratio Decidendi
The appellate authority under Section 152 of the Maharashtra Co-operative Societies Act, 1960 cannot re-appreciate evidence unless the original order is perverse or illegal. The DJR exceeded its jurisdiction by substituting its own findings without finding perversity or illegality in the DDR's order.
Judgment Excerpts
Petitioner assails the order dated 29.04.2021 passed by the Divisional Joint Registrar of Co-Operative Societies, Nashik, Division Nashik (for short the ‘DJR’) passed in Appeal A-30/2020, by which the DJR has set aside the order darted 01.12.2020 passed by the District Deputy Registrar (for short the ‘DDR’) disqualifying respondent Nos. 4 to 7 as representatives of Managing Committee of Mahavir Nagari Sahakari Patpedhi Maryadit Chopda (for short ‘Mahavir Society’).
Procedural History
Petitioner filed complaints before DDR on 30.01.2020 and 06.03.2020. DDR issued show cause notice on 26.08.2020 and passed disqualification order on 01.12.2020. Respondent Nos. 4 to 7 appealed to DJR, who stayed the order on 20.01.2021 and set it aside on 29.04.2021. Petitioner filed Writ Petition No. 2952 of 2021 and later the present writ petition.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: 27, 152
